CAMERON LNG, ENTERGY LOUISIANA ADVANCE RENEWABLE ENERGY SERVICE AGREEMENT

Rhea-AI Summary

Cameron LNG has signed a memorandum of understanding (MOU) with Entergy Louisiana to negotiate a new electric service agreement aimed at reducing Scope 2 emissions from electricity usage. The MOU lays the groundwork for a potential 20-year agreement focused on renewable power, crucial for Cameron LNG's sustainability goals. This initiative is expected to support the expansion of Cameron LNG, which includes a new liquefaction train. Entergy Louisiana aims to meet rising demand for carbon-reduction options, demonstrating its commitment to a cleaner energy future.

Positive

• Formation of a MOU with Entergy Louisiana for renewable energy procurement.
• Potential to significantly reduce Scope 2 emissions, enhancing sustainability.
• Supports planned expansion of Cameron LNG with a new liquefaction train.

Negative

• None.

ESA is expected to reduce scope 2 emissions from electricity

HACKBERRY, La., Dec. 7, 2022 /PRNewswire/ -- Cameron LNG announced today it has entered into a memorandum of understanding (MOU) with Entergy Louisiana, LLC to negotiate the terms and conditions for a new electric service agreement (ESA) to reduce Cameron LNG's Scope 2 emissions from the electricity it purchases from Entergy Louisiana.

"Entergy Louisiana is a critical partner in our efforts to reduce our overall direct and indirect GHG emissions. Cameron LNG strives to provide its customers with LNG that has the lowest possible emissions intensity," said Whit Fairbanks, president of Cameron LNG. "The MOU we have signed allows us to memorialize an agreement to bring on enough renewable power to offset the emissions for our facility, including the Train 4 expansion, when all renewable generations phases are added to the supply portfolio."

"We're proud to partner with Cameron LNG on this agreement," said Phillip May, Entergy Louisiana president and CEO. "Strong businesses lead to a stronger Louisiana for us all. Our customers are continuously seeking carbon-reduction options, and this is another example of us working with an industry leader to meet their own goals as well as our own."

The MOU is non-binding and sets forth a framework for Entergy Louisiana and Cameron LNG to finalize and sign a minimum 20-year long-term agreement for the procurement of new renewable generation resources in Louisiana over an agreed-upon timeframe, subject to the ultimate approval of the Louisiana Public Service Commission and Cameron LNG. The new electric service agreement is expected to be developed together with a new, renewable tariff option that will be filed for Commission review and approval in the coming months. This new tariff along with Entergy Louisiana's recently approved optional Geaux Green tariff program will provide customers the opportunity to reduce their scope 2 emissions by subscribing to new renewable generation resources.

Cameron LNG, a 13.5 million tonnes per annum (Mtpa) liquefied natural gas export facility operating in Hackberry, is working with its joint venture partners to develop a cost-effective and lower-emission potential expansion of the facility. The proposed Cameron LNG expansion would include an additional liquefaction train with a maximum production capacity of approximately 6.75 Mtpa that is planned to utilize electric compression, equivalent to adding approximately 300 megawatts (MW) of demand to the Entergy Louisiana system.

Entergy has been an industry leader in voluntary climate action for more than two decades. In 2001, the company was the first U.S. electric utility to commit to voluntarily stabilizing greenhouse gas emissions. That goal has since been accelerated with a commitment to achieving net-zero carbon emissions by 2050.

About Cameron LNG

Cameron LNG was developed to meet the growing demand for energy worldwide with three liquefaction trains to process and load LNG supplies onto ships safely. Cameron LNG is a joint venture between five international companies with extensive LNG market and shipping experience. The partners include affiliates of Sempra Infrastructure, Mitsui & Co., Mitsubishi Corporation, TotalEnergies, and NYK Line. Cameron LNG is in a strategic geographic position to provide ease of access to global gas markets, including Asia and Europe. To date, the facility has exported more than 450 cargoes of U.S. natural gas to 29 countries worldwide.

About Entergy Louisiana

Entergy Louisiana, LLC provides electric service to more than 1 million customers in 58 parishes and natural gas service to more than 94,000 customers in Baton Rouge, Louisiana. Entergy Louisiana is a subsidiary of Entergy Corporation (NYSE: ETR), a Fortune 500 company headquartered in New Orleans. Entergy Corporation powers life for 3 million customers through its operating companies across Arkansas, Louisiana, Mississippi and Texas. Entergy is creating a cleaner, more resilient energy future for everyone with our diverse power generation portfolio, including increasingly carbon-free energy sources. With roots in the Gulf South region for more than a century, Entergy is a recognized leader in corporate citizenship, delivering more than $100 million in economic benefits to local communities through philanthropy and advocacy efforts annually over the last several years. Our approximately 12,000 employees are dedicated to powering life today and for future generations.

This news release contains statements that are not historical fact and constitute forward-looking statements. These statements can be identified by words like "expects", "will", "may", "plans", "intends" or similar expressions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements. Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions and the timing of actions, including issuances of permits to construct and licenses for operation, by the U.S. Department of Energy, Federal Energy Regulatory Commission and other regulatory, governmental and environmental bodies in the United States; the timing and success of business development efforts and construction, maintenance and capital projects, including risks in obtaining, maintaining or extending permits, licenses, certificates and other authorizations on a timely basis and risks, in obtaining adequate and competitive financing for such projects; energy markets, including the timing and extent of changes and volatility in commodity prices, and the impact of any protracted reduction in oil prices from historical averages; capital markets conditions, including the availability of credit, interest and currency exchange rates; weather conditions, natural disasters, catastrophic accidents, and other events that may damage our facilities and systems; business, regulatory, environmental and legal decisions and requirements; and other uncertainties, all of which are difficult to predict and many of which are beyond our control.

 

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SOURCE Cameron LNG

FAQ

What is the purpose of the MOU between Cameron LNG and Entergy Louisiana?

The MOU aims to negotiate a new electric service agreement to reduce Scope 2 emissions from electricity purchased by Cameron LNG.

How long is the proposed agreement between Cameron LNG and Entergy Louisiana?

The proposed agreement is expected to be a minimum of 20 years in duration.

What are Scope 2 emissions and how does this agreement address them?

Scope 2 emissions refer to indirect emissions from purchased electricity. The agreement aims to offset these emissions by incorporating renewable energy into Cameron LNG's supply.

What expansion plans are associated with Cameron LNG?

Cameron LNG plans to add a new liquefaction train, increasing production capacity by approximately 6.75 Mtpa.

What is Entergy Louisiana's role in this agreement?

Entergy Louisiana is looking to provide renewable energy resources to support Cameron LNG's emissions reduction goals and facilitate a cleaner energy future.